Contrasting First Northern Community Bancorp (NASDAQ:FNRN) and HomeTrust Bancshares (NYSE:HTB)

First Northern Community Bancorp (NASDAQ:FNRN) and HomeTrust Bancshares (NYSE:HTB) are both small-cap financial services companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation & Earnings

This table compares First Northern Community Bancorp and HomeTrust Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northern Community Bancorp	$88.40 million	3.28	$21.13 million	$1.40	12.64
HomeTrust Bancshares	$292.47 million	2.61	$64.36 million	$3.87	11.75

HomeTrust Bancshares has higher revenue and earnings than First Northern Community Bancorp. HomeTrust Bancshares is trading at a lower price-to-earnings ratio than First Northern Community Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for First Northern Community Bancorp and HomeTrust Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northern Community Bancorp	0	1	0	0	2.00
HomeTrust Bancshares	0	1	1	0	2.50

HomeTrust Bancshares has a consensus price target of $47.00, suggesting a potential upside of 3.38%. Given HomeTrust Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe HomeTrust Bancshares is more favorable than First Northern Community Bancorp.

Risk & Volatility

First Northern Community Bancorp has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, HomeTrust Bancshares has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Institutional & Insider Ownership

17.9% of First Northern Community Bancorp shares are owned by institutional investors. Comparatively, 60.9% of HomeTrust Bancshares shares are owned by institutional investors. 11.9% of First Northern Community Bancorp shares are owned by company insiders. Comparatively, 11.0% of HomeTrust Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares First Northern Community Bancorp and HomeTrust Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Northern Community Bancorp	25.92%	11.32%	1.23%
HomeTrust Bancshares	22.78%	11.25%	1.47%

Summary

HomeTrust Bancshares beats First Northern Community Bancorp on 9 of the 14 factors compared between the two stocks.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small to medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market accounts, and time deposits. Its loan portfolio comprises of commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. The company also offers credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. In addition, it provides issues cashier’s checks, safe deposit boxes rental, and other customary banking services. The company operates eleven full-service branches located in the cities of Auburn, Davis, Dixon, Fairfield, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, and Woodland; a satellite banking office inside a retirement community in the city of Davis; a residential mortgage loan office in Davis; and a commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

About HomeTrust Bancshares

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products and services. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company’s loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate, construction and development, and commercial and industrial loans. It also provides small business administration loans, equipment finance leases, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services. As of June 30, 2021, the company operated 41 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.